What is a banknote?
Q: What is a banknote?
A: A banknote is a paper by which a bank promises to pay to the bearer on demand.
Q: What are coins used for?
A: Coins are generally used for lower valued monetary units.
Q: Why were banknotes introduced?
A: Banknotes were introduced because carrying around a lot of precious metal was cumbersome and often dangerous.
Q: What determines the value of money?
A: Originally, the value of money was determined by the value of the material it was made of, such as silver or gold.
Q: What is a note in financial terms?
A: In financial terms, a note is a promise to pay someone money.
Q: What was the original purpose of banknotes?
A: The original purpose of banknotes was to be a promise to give an amount of precious metal to anyone who presented the paper.
Q: How were banknotes used for paying for things?
A: People could pay for things by giving the banknote, and thus the stored value (usually in gold or silver coins kept in the bank's vault) that the banknote promised.
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